MBIA Inc., the holding company for Municipal Bond Investors Assurance Corp., announced yesterday it has completed the sale of 1.8 million shares of common stock to institutional investors.
The stock offering, sold at $54.875 a share, includes 1.43 million of new shares from MBIA and 370,000 shares sold by Credit Local de France. Credit Local cut its interest in MBIA to 2.2%, from 3.2%. through the stock sale.
MBIA'S closing price on the New York Stock Exchange yesterday was $55 4, up 7/8 from Monday's close of 54 7/8.
A press release from MBIA says the municipal bond insurer will get $75.2 million of net proceeds from the sale, underwritten by Donaldson, Lufkin & Jenrette Securities Corp. and Lehman Brothers.
MBIA sold $ 1 00 million of 30-year debentures earlier this month, bringing the company's total new capital raised over the past two weeks to almost $175 million.
Moody's Investors Service rated the bonds Aa2 and Standard & Poor's Corp. rated them AA-plus.
"These debt and equity offerings provide additional capital for future growth, " David H. Elliott, president and chief executive officer of MBIA, said in a statement. "The outlook for the company remains very favorable as growing infrastructure needs continue to fuel strong growth in both municipal bond issuance and insured bond volume.
The company's capital ratio, which compares debt service exposure to statutory capital, dropped to 166:1 from 185:1 before the debt and equity sales.
